Comet Group Plc
Encyclopedia
Comet is an electrical retailer in the United Kingdom, which is owned by OpCapita and a series of investors, after its sale by Kesa Electricals. The group was founded in 1933 by George Hollingberry in Hull
as Comet Battery Stores Limited. The retailer specialises in electrical retailing after Comet demerged from Kingfisher, which also owns electrical retailer Laskys and DIY store B&Q
and formerly Woolworths
and Superdrug
, in 2003 to form a new group under the Kingfisher Electricals S.A. umbrella. On 18 August 2005, Comet underwent a £20 million re branding campaign to differentiate itself from other players in the market, mainly Currys
, as both company logos were in white print against a red background and the company names were 'similar'. It was often the case that customers would buy an item from Currys and attempt to return it to Comet, either believing the two companies were part of the same brand or simply mistaking the two.
Comet operates a policy called Every Day Low Pricing. With this, they check competitors' prices and where they find lower prices they reduce their own to match. Like many retailers they back this up with a 'price promise'. This states that if a customer finds the same product on sale at another retailer locally (within 10 miles) for less, then Comet will match this price. The product needs to be exactly the same model, sealed new, in stock from the other retailer within 10 miles of the purchase store, and verifiable. They do not match Internet sites or warehouse outlets such as Makro
as they do not offer the service and advice that Comet does in store. The price promise can be used at the time of purchase or at any time within the first 14 days after purchase.
, Pioneer
, Apple, Sony
, Samsung
, Philips
, AEG
and Miele
. Through Kesa, Comet also sell their own brand products covering most categories of small electricals under the name ProLine
.
Kesa Electricals have also unveiled plans for forty two-storey Comet outlets by putting mezzanine levels into some of its 250 Comet stores, starting with 10 in 2007. Kesa, who launched a combined television, phone and internet service at its French chain Darty
, ruled out bringing a similar service to the UK. Hugh Harvey, Comet's managing director, said the UK chain would "stick to a traditional retail offer while we watch Mr Murdoch and Mr Branson fight it out." In France, 28,000 subscribers had signed up to DartyBox by the end of January 2007 with a further 140,000 more subscribers by the end of 2007.
old phrase was "We live electricals". The 'mascot' was a small man wearing a helmet with a comet on it and riding a scooter
.Edith Bowman
was the voice of the television and radio adverts for Comet since 2005. The company had a new series of TV adverts, with a new slogan; "We deal in your ideal". The adverts see the old animated style dropped for live action film, but retain the voice of Edith Bowman, as well as the old slogan in as part of the logo.
On 15 September 2010 a new logo was launched, similar to that of the previous but slightly softer with the Comet wordmark in lowercase and with a new strap line of 'Come and Play'. The new branding is focusing on more of a fun and friendly approach to its customers, appealing to many different target audiences to come into store and try out some of the interactive displays such as 3D TV. There are 4 new TV adverts too, with Comet employees building one big technical visual appliance from lots of smaller ones.
.
Comet price promise states, "There are a couple of exceptions. We won't try to match the price of internet or mail order companies with no stores. Nor do we match against warehouse or mail order clubs or voucher promotions, either online or in-store."
to a state-of-the-art warehouse on Edinburgh Way, Harlow. In addition to their 'New Harlow' RDC, they have a further RDC in Skelmersdale and a National Distribution Centre (NDC) in Corby, Northamptonshire.
This data is sourced from the Comet Group website
Comet delivered record trading from Boxing Day 2010 through to the New Year weekend, but this strong performance failed to offset the weaker sales seen early in December due to competitive trading and adverse weather conditions. Overall revenue for the period declined by 6.5 per cent in local currency and by 7.3 per cent on a like-for-like basis. Gross margin declined by c.140bps reflecting the highly promotional nature of the market over the period. Web-generated sales grew by only 3 per cent, reflecting some disruption during the introduction of the new software platform by Comet in November 2010. Since the introduction of the VAT increase on 4 January Comet has so far seen sales trends soften. In the light of these factors Comet is now anticipating the company will deliver a small retail loss for the year.
and Leeds
in an attempt to compete with Currys Digital.
The Leeds Briggate store was closed, 3 months after opening due to the store premises, which were spread over two storeys, being unsuitable for disabled access. The store was deemed a success and Comet are currently searching for another site in the area which would be more suitable for all customers.
The store in Manchester
located in the Arndale Centre remained open after the trial period, however it closed on 17 January 2011.
Kesa retains responsibility for the Comet pension scheme, as part of the deal, which has a £39 million (€45 million) deficit. They will invest £50 million into the new entity, but chairman David Newlands said it would be wrong to predict a great return: "The £50m is categorised as an investment. We had to pay £50m to get the business away. We will write it off as having no value."
Kingston upon Hull
Kingston upon Hull , usually referred to as Hull, is a city and unitary authority area in the ceremonial county of the East Riding of Yorkshire, England. It stands on the River Hull at its junction with the Humber estuary, 25 miles inland from the North Sea. Hull has a resident population of...
as Comet Battery Stores Limited. The retailer specialises in electrical retailing after Comet demerged from Kingfisher, which also owns electrical retailer Laskys and DIY store B&Q
B&Q
B&Q plc is a multinational DIY and home improvement retailer headquartered in Eastleigh, United Kingdom. It was founded in 1969 and is a wholly owned subsidiary of Kingfisher plc, which is listed on the London Stock Exchange....
and formerly Woolworths
Woolworths Group
Woolworths Group plc was a listed British company that owned the high-street retail chain, Woolworths, as well as other brands such as the entertainment distributor Entertainment UK and book and resource distributor Bertram Books...
and Superdrug
Superdrug
Superdrug Stores PLC is Britain's second-largest beauty and health retailer behind Boots. Superdrug - part of the AS Watson Group which in turn is part of the Hong Kong conglomerate Hutchison Whampoa - is a UK based company with over 890 stores, which since 2006, includes the Republic of Ireland...
, in 2003 to form a new group under the Kingfisher Electricals S.A. umbrella. On 18 August 2005, Comet underwent a £20 million re branding campaign to differentiate itself from other players in the market, mainly Currys
Currys
Currys is an electrical retailer in the United Kingdom and Ireland and is owned by Dixons Retail plc. It specialises in selling home electronics and household appliances, with 295 superstores and 73 high street stores...
, as both company logos were in white print against a red background and the company names were 'similar'. It was often the case that customers would buy an item from Currys and attempt to return it to Comet, either believing the two companies were part of the same brand or simply mistaking the two.
Comet operates a policy called Every Day Low Pricing. With this, they check competitors' prices and where they find lower prices they reduce their own to match. Like many retailers they back this up with a 'price promise'. This states that if a customer finds the same product on sale at another retailer locally (within 10 miles) for less, then Comet will match this price. The product needs to be exactly the same model, sealed new, in stock from the other retailer within 10 miles of the purchase store, and verifiable. They do not match Internet sites or warehouse outlets such as Makro
Makro
Makro is a Dutch chain of Warehouse clubs, also called cash and carries. The first one opened in 1968 in Amsterdam. In the following years more stores opened in the Netherlands and in several other countries within Europe. In the 1970s and 1980s Makro extended its business to the Americas and...
as they do not offer the service and advice that Comet does in store. The price promise can be used at the time of purchase or at any time within the first 14 days after purchase.
Store types
The retailer has around 250 stores in the UK in three different layouts. The 'high street' style store contains large display cases stocking mainly small domestic appliances such as grey and brown goods with others in warehouses and few items available for self select. The 'core' store, larger than the previous, stocks a larger range of goods to include white goods. Some items are self select; other larger items are kept in a warehouse. The 'destination' store, stocks nearly the whole range that Comet sells, many items are self select except for very large and delivery only items. These stores will also stock many of what Comet calls the 'premier collection'. These are products by well-known brands such as, PanasonicPanasonic
Panasonic is an international brand name for Japanese electric products manufacturer Panasonic Corporation, which was formerly known as Matsushita Electric Industrial Co., Ltd...
, Pioneer
Pioneer Corporation
is a multinational corporation that specializes in digital entertainment products, based in Kawasaki, Kanagawa, Japan. The company was founded in 1938 in Tokyo as a radio and speaker repair shop...
, Apple, Sony
Sony
, commonly referred to as Sony, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan and the world's fifth largest media conglomerate measured by revenues....
, Samsung
Samsung
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...
, Philips
Philips
Koninklijke Philips Electronics N.V. , more commonly known as Philips, is a multinational Dutch electronics company....
, AEG
AEG
Allgemeine Elektricitäts-Gesellschaft was a German producer of electrical equipment founded in 1883 by Emil Rathenau....
and Miele
Miele
Miele is a manufacturer of high-end domestic appliances, commercial equipment and fitted kitchens, based in Gütersloh, Germany. Miele has always been a family-owned and -run company, founded in 1899 by Carl Miele and Reinhard Zinkann.-History:...
. Through Kesa, Comet also sell their own brand products covering most categories of small electricals under the name ProLine
ProLine (company)
ProLine is a range of own brand electronic products made by KESA Electricals plc for BCC in the Netherlands, Darty in France, Vandenborre in Belgium and Comet in the United Kingdom. ProLine covers a wide range of electricals across the store, covering white and brown goods.-External links:***...
.
Kesa Electricals have also unveiled plans for forty two-storey Comet outlets by putting mezzanine levels into some of its 250 Comet stores, starting with 10 in 2007. Kesa, who launched a combined television, phone and internet service at its French chain Darty
Darty
Darty, founded in 1957 by the Darty family in France, is now a wholly owned subsidiary of the UK-based KESA Electricals Plc specialising in Electrical retailing...
, ruled out bringing a similar service to the UK. Hugh Harvey, Comet's managing director, said the UK chain would "stick to a traditional retail offer while we watch Mr Murdoch and Mr Branson fight it out." In France, 28,000 subscribers had signed up to DartyBox by the end of January 2007 with a further 140,000 more subscribers by the end of 2007.
Slogan
Comet's sloganSlogan
A slogan is a memorable motto or phrase used in a political, commercial, religious and other context as a repetitive expression of an idea or purpose. The word slogan is derived from slogorn which was an Anglicisation of the Scottish Gaelic sluagh-ghairm . Slogans vary from the written and the...
old phrase was "We live electricals". The 'mascot' was a small man wearing a helmet with a comet on it and riding a scooter
Scooter (motorcycle)
A scooter is a motorcycle with step-through frame and a platform for the operator's feet. Elements of scooter design have been present in some of the earliest motorcycles, and motorcycles identifiable as scooters have been made from 1914 or earlier...
.Edith Bowman
Edith Bowman
Edith Eleanor Bowman is a Scottish music critic, radio DJ and television presenter. She is mostly known for hosting the weekday afternoon show and from September 2009 weekend morning on BBC Radio 1 and for presenting a variety of music related television shows and music...
was the voice of the television and radio adverts for Comet since 2005. The company had a new series of TV adverts, with a new slogan; "We deal in your ideal". The adverts see the old animated style dropped for live action film, but retain the voice of Edith Bowman, as well as the old slogan in as part of the logo.
On 15 September 2010 a new logo was launched, similar to that of the previous but slightly softer with the Comet wordmark in lowercase and with a new strap line of 'Come and Play'. The new branding is focusing on more of a fun and friendly approach to its customers, appealing to many different target audiences to come into store and try out some of the interactive displays such as 3D TV. There are 4 new TV adverts too, with Comet employees building one big technical visual appliance from lots of smaller ones.
Criticism
Comet regularly comes under fire for poor customer service issues and inadequately trained sales staff. Complaints about Comet's refusal to refund faulty products have led to investigation by Trading StandardsTrading Standards Institute
The Trading Standards Institute is the professional association which represents trading standards professionals in the UK and overseas.-History:...
.
Comet price promise states, "There are a couple of exceptions. We won't try to match the price of internet or mail order companies with no stores. Nor do we match against warehouse or mail order clubs or voucher promotions, either online or in-store."
Distribution
Comet out-source their distribution operations to Wincanton and DHL. They have recently invested millions of pounds moving their southern Regional Distribution Centre (RDC) from River Way in HarlowHarlow
Harlow is a new town and local government district in Essex, England. It is located in the west of the county and on the border with Hertfordshire, on the Stort Valley, The town is near the M11 motorway and forms part of the London commuter belt.The district has a current population of 78,889...
to a state-of-the-art warehouse on Edinburgh Way, Harlow. In addition to their 'New Harlow' RDC, they have a further RDC in Skelmersdale and a National Distribution Centre (NDC) in Corby, Northamptonshire.
Financial results
| Year | 2000/01 | 2001/02 | 2002/03 | 2003/04 | 2004/05 | 2005/06 | 2006/07 | 2007/08 | 2008/09 | 2009/10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales £M | 1,205.8 | 1,335.6 | 1,406.1 | 1,444.4 | 1,538.1 | 1,530 | 1,676.5 | 1,731.6 | 1,659.6 | 1,650.2 |
| Retail Profit £M | 33.1 | 38.4 | 43.3 | 47.4 | 52.0 | 38.0 | 46.1 | 44.2 | 10.1 | 11.5 |
This data is sourced from the Comet Group website
Comet delivered record trading from Boxing Day 2010 through to the New Year weekend, but this strong performance failed to offset the weaker sales seen early in December due to competitive trading and adverse weather conditions. Overall revenue for the period declined by 6.5 per cent in local currency and by 7.3 per cent on a like-for-like basis. Gross margin declined by c.140bps reflecting the highly promotional nature of the market over the period. Web-generated sales grew by only 3 per cent, reflecting some disruption during the introduction of the new software platform by Comet in November 2010. Since the introduction of the VAT increase on 4 January Comet has so far seen sales trends soften. In the light of these factors Comet is now anticipating the company will deliver a small retail loss for the year.
High Street
Comet tested the idea of high street stores in ManchesterManchester
Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...
and Leeds
Leeds
Leeds is a city and metropolitan borough in West Yorkshire, England. In 2001 Leeds' main urban subdivision had a population of 443,247, while the entire city has a population of 798,800 , making it the 30th-most populous city in the European Union.Leeds is the cultural, financial and commercial...
in an attempt to compete with Currys Digital.
The Leeds Briggate store was closed, 3 months after opening due to the store premises, which were spread over two storeys, being unsuitable for disabled access. The store was deemed a success and Comet are currently searching for another site in the area which would be more suitable for all customers.
The store in Manchester
Manchester
Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...
located in the Arndale Centre remained open after the trial period, however it closed on 17 January 2011.
Sale to OpCaptia
On Wednesday 9 November 2011, it was announced that Comet had been sold to investment firm OpCapita for £2.Kesa retains responsibility for the Comet pension scheme, as part of the deal, which has a £39 million (€45 million) deficit. They will invest £50 million into the new entity, but chairman David Newlands said it would be wrong to predict a great return: "The £50m is categorised as an investment. We had to pay £50m to get the business away. We will write it off as having no value."
Competitors
- Dixons, Currys.digitalCurrys.digitalCurrys Digital is an electrical retailer in the United Kingdom, that is owned by DSG International plc.With its origins in a photographic shop opened by Charles Kalms, the chain now has a store in most towns and cities across the UK and Ireland...
, CurrysCurrysCurrys is an electrical retailer in the United Kingdom and Ireland and is owned by Dixons Retail plc. It specialises in selling home electronics and household appliances, with 295 superstores and 73 high street stores...
and PC WorldPC World (retailer)PC World is OWNED BY THE GOVERNMENT one of the WHER MA MEMORY STICK ?!?!??! United Kingdom's largest chains of mass-market computer superstores. It is part of Dixons Retail plc. PC World operates under the brand name PC City in Spain, Italy and Sweden....
(owned by Dixons Retail plc) - ArgosArgos (retailer)Argos is the largest general-goods retailer in the United Kingdom and Ireland with over 800 stores. It is unique amongst major retailers in the UK in that it is a catalogue merchant...
(owned by Home Retail Group) - Maplin ElectronicsMaplin ElectronicsMaplin Electronics is a retailer of electronic goods in the UK and Ireland. As of December 2010, there are 180 Maplin Electronics stores in the United Kingdom...
- Tesco DirectTescoTesco plc is a global grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues and the second-largest measured by profits...
- Asda DirectAsdaAsda Stores Ltd is a British supermarket chain which retails food, clothing, general merchandise, toys and financial services. It also has a mobile telephone network, , Asda Mobile...
- Best BuyBest BuyBest Buy Co., Inc. is an American specialty retailer of consumer electronics in the United States, accounting for 19% of the market. It also operates in Mexico, Canada & China. The company's subsidiaries include Geek Squad, CinemaNow, Magnolia Audio Video, Pacific Sales, and, in Canada operates...